Find out, what is Differences Between Term Insurance and Personal Accidental Insurance?

Life insurance provides financial protection to your families after your death. If your family has no other means of income except your income, then it is very helpful in making your loved ones capable of financially. On the other hand, companies also offer accident insurance services, but this does not include the natural causes of death, it can only be considered appropriate for the safety of your family. Today we will try to tell the fundamental difference between these two in our news.

Personal Accidental Insurance is considered a better option only when:
• If a person likes to live an active lifestyle and wants extra protection to avoid death or disability due to accidental reasons.
• If there is a lot of active members in a person’s house and they want protection from death, spouse or dependent disability.
• A person who can not qualify for life insurance due to medical reasons, but despite this, he seeks protection from death and disability.

What is Life Insurance?:

Life insurance is such a contract, which promises to pay a certain amount on the occurrence of the event for which the insured person is insured. Overall, life insurance is a partial solution to the problems arising due to death.There are two types of Life Insurance.

1. Pure Life Insurance
2. Insurance less investment

Pure Life Insurance – Pure Life Insurance is also of four types, but Term Insurance is considered as the most prominent.

Term Insurance Policy – It is the cheapest and easy form of insurance, in which financial security is provided for a particular period. This period can be between 15 to 20 years. Term Insurance ensures that your family will get a lump sum if you do not stay. At the same time, if the insured does not have anything during the policy, then no payment will be made to anyone. Its premium is cheaper than other policies.

Personal Accidental Insurance – Personal Accidental Insurance provides protection against permanent disability due to accident or death due to accident. However, Personal Accidental Insurance has not yet received popularity because very few insurance agents try to sell it. However, if you are young and are looking to secure your insurance portfolio, then you should consider investing in a Personal Accidental Insurance Policy.

Differences Between Term Insurance and Personal Accidental Insurance:

Term insurance is widely separated from personal accident insurance. Because term insurance provides you protection from death, whether it is due to any illness or due to accident. On the other hand, Personal Accidental Insurance benefits you only when you have died in a road accident or you have been victim of permanent disability, partial permanent disability and temporary total disability (limb removal) due to accident. In this natural death, you get no benefit.

During term insurance, the insured’s age matters a great deal, while personal occupational insurance is a key factor that determines your premium. There are three types of risk categories in it

Risk Type 1: Involves those people who are associated with the work of managerial work, lawyer, teacher, banker etc.
Risk Type 2: Includes those people who are the drivers of contractual construction, garage mechanics, light motor vehicles etc.
Risk Type 3: Includes people who are involved in dangerous occupations, such as people working in mines, high tensioned wire etc.

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